Factors that determine the location of an industry in an area.

1.    Availability of raw materials to feed the industry like minerals and agricultural products.
2.    Presence of enough power for example coal, petroleum and H.E.P.
3.    Presence of an improved transport network, preferably railway and water transport systems for bulky goods.
4.    Presence of constant market for the manufactured goods.  This requires the urban centres with a high population and a reasonable income. Market also affects location of industries in the following ways:
5.    Perishability of goods for example bread, milk, cooked food, and cakes are located where there is ready market.
6.    Fragile goods which can be broken for example glass ware, bottled goods need a place with ready market.
7.    Bulky goods such as bricks, tiles, furniture need a place with ready market because of high costs of transport.
8.    Human resource factors such as technological inventions, managerial skills.
9.    Labour supply is very important for the development of industries.
10.    A large population with the capacity to pay for the manufactured goods.
11.    Availability of capital to purchase machines, pay workers, and develop the infrastructure.
12.    The government policy which can encourage industrial development in the following ways:
•    Protecting young industries against foreign competition.
•    Giving loans to industrialists at low interest rates.
•    Looking for markets on behalf of industrialists.
•    Formulating proper national plans to help the industrialist invest in their home countries.
•    Promoting the infrastructure.
•    Looking for investors from abroad who can invest in the country.
13.    Industrial inertia.  This refers to the development of industries in areas where there are other industries because of their advantages.
14.    Some industries may come up due to the influence of historical events.
15.    The economic activities in an area determine the industries in an area.  For example mining, fishing, commerce.
16.    Some industries require high supply of water for processing for example iron, steel aluminium smelting and timber pulping.